Determine how to minimize the net cost incurred

Assignment Help Operation Management
Reference no: EM132113898

During the next four months, a customer requires, respectively, 500, 650, 1000, and 700 units of a commodity, and no backlogging is allowed (that is, the customer’s requirements must be met on time). Production costs are $150, $180, $140, and $170 per unit during these months. The storage cost from one month to the next is $20 per unit (assessed on ending inventory). It is estimated that each unit on hand at the end of month 4 can be sold for $200. Assume there are 10 units of beginning inventory.

Determine how to minimize the net cost incurred in meeting the demands for the next four months. (Write your notation, LP formulation explicitly, submit your managerial reports with computer models, solutions, answer and sensitivity reports attached.)

If the production costs are all set to $150, would your solution change?

Reference no: EM132113898

Questions Cloud

What is the role of outside directors : What is the role of outside directors? How do they serve the corporation?
Difference between bill of exchange and bill of lading : What is the difference between a bill of exchange and a bill of lading? Are straight bills of lading negotiable?
Produces wheel rims for heavy-duty industrial vehicles : Your company produces wheel rims for heavy-duty industrial vehicles. What are the 3 standard deviation Cpk statistics for upper and lower specification limits.
Market demand for firm product can be moderate or strong : Whatever capacity choice is made, the market demand for the firm's product can be "moderate" or "strong."
Determine how to minimize the net cost incurred : Determine how to minimize the net cost incurred in meeting the demands for the next four months.
Benefit from strategic business analysis : Explain why you think Motorola as a company would benefit from a strategic business analysis
Explain the linear relationship of two variables : Which of these following statistical techniques can explain the linear relationship of two variables?
Scope and procedure of oral depostions : Write a brief outline on the definition, purpose, scope, and procedure of ORAL DEPOSTIONS.
Properly label the decision tree for the churner decision : What are the two capacity options that HCYE needs to consider? Draw and properly label the Decision Tree for the churner decision.

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd